India’s Exports Rise To 115 Nations In FY24, Even As Overall Growth Tepid

India's exports have risen to 115 countries out of the total 238 destinations in FY24, despite global economic uncertainties, even as overseas shipments reported tepid growth of 0.23%. Overall exports reached $778.2 billion in FY24 as compared with $776.4 billion in FY23, as per data from the Ministry of Commerce.

The 115 export destinations represent 46.5% of India's total exports and encompass countries such as the US, UAE, Singapore, Bangladesh, the Netherlands, China, the UK, Saudi Arabia, Germany, and Italy.

The country's merchandise exports dipped by 3% to $437.1 billion in the last fiscal. However, service exports rose to $341.1 billion in FY24 as against $325.3 billion in FY23.

The data showed that despite persistent global challenges, overall exports (goods and services together) hit the highest level in FY23.

The share of India's merchandise exports has also increased marginally, from 1.70% in 2014 to 1.82% in 2023. India's rank in world merchandise exporters too has improved from 19th to 17th during the same period.

Further, India's exports to its top 10 destinations witnessed a 13% year-on-year increase in 2023–24.

The U.A.E. has emerged as the primary destination, with a substantial 12.71% growth in export value at $35.6 billion. Similarly, exports to Singapore surged by 20.19% to $14.4 billion, to the U.K. (up 13.30% to $13 billion), and to China (up 8.70% to $16.7 billion).

The data showed that the exponential growth rates observed in countries like Russia (35.41%), Romania (138.84%), and Albania (234.97%) underscore the exploration of new markets.

"Strengthening trade relations with these nations could unlock untapped opportunities and bolster India's overall export competitiveness," an official said.

The country's outbound shipments to regions including the Commonwealth of Independent States, Oceania and Europe too witnessed expansion during 2023–24 over 2022–23.

The top five export destinations driving export growth in the CIS region during 2023–24 are Russia, Uzbekistan, Ukraine, Armenia and Tajikistan. Similarly, the top five destinations driving India's export growth in the Oceania region in the last fiscal are Australia, Timor-Leste, Samoa, Vanuatu and Solomon Island.

And in Europe, the major countries where Indian exporters recorded healthy growth in their shipments during 2023–24 are the UK, Romania, Albania, Netherland and Greece.

On the commodities front, as many as 17 items have registered an increase in exports in 2023–24 over the last financial year. These sectors constitute 48.4% of India's export basket and include engineering, electronic goods, pharmaceuticals, cotton yarn, fabrics, and handloom products.

However, there was a notable decline in key sectors in the last fiscal such as petroleum products (-13.66%) and gems and jewellery (-13.83%). According to the data, of the 229 source nations, India's imports declined from 124 countries in 2023–24. The top 10 source countries, which constitute 59.3% of India's import basket, include China, the USA, Saudi Arabia, Indonesia, Russia, and Switzerland.

A decline in imports was reported from countries like the UAE, Qatar, Kuwait and Oman, and it highlights the need for India to bolster its trade relations, especially with Gulf Cooperation Council member countries, the official said.

"While some declines may stem from market dynamics or economic conditions, they also present opportunities for policymakers to reconsider trade strategies, prioritise domestic production, and foster indigenous industries," the official added.

Meanwhile, India Exim Bank projected on Thursday that India's merchandise exports would rise by 12.3% to $116.7 billion during April–June this fiscal.

The outlook is, however, subject to risks of uncertain prospects for advanced economies, geopolitical shocks, the Middle East crisis leading to the intensification of the Red Sea crisis and deepening geo-economic fragmentation, among other factors, it added.

(With PTI inputs)